South Korea's trading volume in the foreign exchange market fell in the third quarter on lower foreign exchange volatility, central bank data showed Wednesday.

Foreign currency transactions in the domestic inter-bank market posted a daily average of 54.66 billion U.S. dollars in the July-September quarter, down 5.2 percent from the previous quarter, according to the Bank of Korea (BOK).

It was the lowest since the fourth quarter of last year as demand for foreign currency trading shrank amid the lower volatility in the foreign exchange market.

Volatility in the won/dollar exchange rate averaged 0.34 percent in the third quarter from 0.39 percent in the prior quarter. The figure for the won/euro rate dipped from 0.35 percent to 0.28 percent in the cited period.

Trading in the spot market declined 11.6 percent over the quarter to 22.97 billion U.S. dollars in the September quarter.

Transactions of the FX derivatives shed 0.9 percent to 34.37 billion U.S. dollars in the same period.